Jakarta: The Indonesian Trade Ministry has announced a significant shift in palm oil export regulations, introducing a new framework aimed at fortifying state-owned exporting companies. The regulation, known as Permendag 16/2026, establishes a transitional period for businesses as they prepare for full implementation by 2027, Indonesian news agency (ANTARA) reported. According to Emirates News Agency, the new regulation supersedes the earlier Ministerial Regulation (Permendag No. 26/2024), and outlines a phased transition intended to give private enterprises ample time to adjust. Bayu Wicaksono Putro, the ministry's Acting Director of Agricultural and Forestry Product Exports, emphasized the unchanged nature of regulated commodities while highlighting tighter control over distribution channels during a virtual briefing in Jakarta. Bayu Wicaksono explained that although the structural elements of the articles remain largely consistent, modifications were made to include definitions, regulations concerning ex porting state-owned enterprises, and specifications for the transition period. The regulation continues to cover five main palm oil derivative products: crude palm oil (CPO), refined bleached deodorized palm oil (RBDPO), refined bleached deodorized palm olein (RBDPL), used cooking oil (UCO), and palm residue. Starting January 1, 2027, the exportation of palm oil derivatives will be exclusively handled by designated exporting state-owned enterprises (SOEs) that possess a valid Export Permit (PE). These enterprises will secure export rights through either fulfilling the Domestic Market Obligation (DMO) or through the formal transfer of export rights from private business actors to the SOEs. To mitigate potential market disruptions, the government has planned a transition period from June 1 to December 31, 2026. This period will allow commercial actors adequate time to adapt to the centralized export mechanism. Bayu confirmed that export permits issued during this time would remain legally binding until the en d of 2026. In a bid to prevent any hindrance to Indonesia's substantial palm oil trade, the government will conduct an official evaluation of the new policy within the next three months, overseen by the Coordinating Ministry for Economic Affairs.